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Joel Hanson lee FI .t� �N incic /44- From: Joel Hanson Sent: Thursday, September 06, 2007 12:15 PM To: 'Scott Stevens' Cc: Zamzow, Elizabeth; 'Patrick Sweeney'; Dennis Unger Subject: RE: Environmental Escrow - Minnesota Petroleum Scott: I have told the Escrow Agent not to disburse funds from the escrow. This was done via e- mail on August 20th and you and Ms. Zamzow were copied. Further, I don't believe the escrow agreement is being followed regarding the release of the funds. Specifically, the tank removal process did not follow the terms as we agreed to. (I outlined this in detail to you in my e -mail of August 23rd and asked for plan of how Twin Cities Stores, Inc. would participate to resolve this matter. I have not heard anything to date.) Also, the Escrow agreement delineates how the release will occur. Those steps have not been followed. I have not received any copies of a payment request and required documentation of expenses. I am then to have seven days to raise any objections to the release (which I will due pursuant to the concerns expressed in my earlier e- mail.) I have no qualms about your contractor being paid and would suggest you do so from other funds until we can reach agreement on the resolution of the removal /remediation issue. In the meantime, I will not authorize the use of the escrow until the remediation issue is satisfactorily resolved. This follows our conversation whereby I stated I did not want to be put in the position of "chasing Oasis" for money to properly complete the clean -up to the standards we agreed to (which extend beyond the escrow funds depending on the nature of the necessary remediation). If I release the escrow at this time, I will have have less money available to ensure the property is properly cleaned up. If we can not agree to a plan of action for remediation and financial participation by Twin Cities Stores, Inc., I will recommend to the City Council we pursue the remedies available to us under Provision #4 of the Escrow Agreement. I am more than willing to work with you to resolve this issue, but I will not have the City take on unnecessary financial exposure to do so. I will be scheduling this topic for discussion by the City Council at their next meeting as they are the final authority relative to the City's position. Joel Original Message From: Scott Stevens [ mailto :sstevens @oasismarkets.com] Sent: Wednesday, September 05, 2007 6:30 PM To: Joel Hanson Cc: Zamzow, Elizabeth; McCool, Brian Subject: Environmental Escrow - Minnesota Petroleum 2 Good evening Joel: We need to get MN Petroleum paid for the tank removal at the Little Canada site. To date, they have not been paid. I instructed our controller to disburse funds from the escrow and he informed me that this was disallowed. As a starting point could you please confirm )r deny this. Regardless of the disagreement on the language of the closure letter, we certainly have the right to pay vendors for environmental work performed. MN Petroleum is now threatening legal action against our camp. Could you please let me know what needs to be done in terms of next steps to get the money released? - 2 1 - t '_ dco Tf